Forecasters predict the global vacation rental industry will top $113.9 billion by 2027. Would you like a piece of this profitable pie?
The beauty of owning a vacation home is that the right property can pay for itself when you’re not using it.
Here’s your guide on how to buy a vacation rental that brings you enjoyment as well as profits.
How to Buy a Vacation Rental That Makes Money
Location is always an important consideration when buying a home, but it’s a priority when you buy a vacation rental.
Yet, houses in prime locations close to major tourist areas, like Walt Disney World, come with a hefty price tag. They also sell fast.
It’s often wiser to look for a property with some attractive features nearby, like these rentals located alongside a popular lake.
You might not have people fighting over every bed, but you’ll still get a lot of interest from those looking for a weekend getaway.
Research Your Options Thoroughly
When you’ve narrowed down a popular vacation spot with homes available, you should find out as much as you can about the available properties.
Find out how many tourists travel to the destination annually, the average cost of rentals, and the expected annual occupancy of rentals in that location.
One last thing to look up is the average number of travelers that visit the location frequently. If it’s a family-friendly hotspot, you’ll need a rental that caters to at least four people.
Calculate Your Vacation Rental Buying Budget
With these figures in mind, it’s easier to work out your vacation rental buying budget. Make sure you can still meet your mortgage payments during those dull spells when the home stands vacant.
Remember, a vacation home needs as much maintenance as your dwelling does, plus you’ll need to keep the utilities connected in the absence of paying guests. If you’re considering hiring a property manager, you must include their fees, too.
Other fees include annual taxes on your rental income, HOA fees if you buy a home in a development and insurance premiums.
Most states expect you to pay an additional lodging tax, which is usually around 5% of your nightly rate, per night you rent out.
Get Help With Your Vacation Rental Purchasing Journey
A real estate agent is always your port of call when buying profitable property. They’ve got all the best vacation rental buying tips and can help you find the best property in line with your budget.
They can negotiate with the owner to give you access to the information you require regarding occupancy rates as well as the costs involved in maintaining the property, too.
Enjoy a Profitable Future
With home sales at an all-time high, and interest rates remaining low for now, purchasing a vacation rental might end up being the best decision you make.
Now that you know the basics of how to buy a vacation rental, you can start researching your options right away.
If you’d like to read more informative articles like this vacation rental buying guide, keep browsing our blog.